ShotSpotter closed a deal for a $10 million line of credit from Umpqua Bank, with a provision to increase the line of credit up to $25 million with the lender’s approval.
The funding is intended to be used by ShotSpotter for working capital, equipment acquisition, financing permitted acquisitions, obtaining letters of credit up to a maximum amount of $3 million in the aggregate at any time outstanding and for other general corporate purposes. The line of credit from Umpqua is subject to customary affirmative and negative covenants for facilities of this type but includes certain limited exceptions to allow ShotSpotter to grow the business through acquisitions as well as organic growth.
“This is a significant phase for ShotSpotter as we continue to execute on our growth strategy,” said Alan Stewart, CFO of ShotSpotter. “Umpqua is a great fit for us because they are an innovative financial company with experience in the technology sector and they completely aligned with our purpose of helping police departments close the public safety gap.”
“ShotSpotter is a unique company because it has a solid, proven public safety solution, paired with a large, relatively untapped market,” said Mark Lee, Umpqua Bank executive vice president and corporate bank regional director.
Newark, CA-based ShotSpotter provides gunfire detection, location and incident-specific forensic analysis solutions that assist police and security personnel in their efforts to deter gun violence.
